Penalty Dropped for Dairy Commission Agent: Audit Impracticality Cited, Tribunal Rules No Penalty u/s 271B.

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....Penalty proceedings u/s 271B for failure to get accounts audited. The assessee's main income was commission earned from sales of milk, acting as an agent for the mother dairy. The gross sales reported were not the actual sales but those of the mother dairy. As a small-time agent, the assessee purchased milk in bulk and sold it daily, remitting the amount to the mother dairy and retaining the commission income. The Assessing Officer observed that the assessee did not maintain books of account. Considering the nature of the assessee's activities, it was not possible to maintain books, and the requirement for audit depended on the gross commission income, not sales. Therefore, the Appellate Tribunal decided in favor of the assessee and held that there was no reason to levy penalty u/s 271B.....